Good policies have been issued continuously, and the traditional Chinese medicine sector still has investment value

[pharmaceutical network market analysis] according to the white paper of Chinese medicine, by 2020, China's great health industry of traditional Chinese medicine will break through 3 trillion yuan, with an average annual compound growth rate of 20% In the future, China's traditional Chinese medicine industry has a large potential development space The industry believes that the current Chinese medicine sector still has its unique investment value On the one hand, from the current drug price reduction policy, the "volume purchase" and "negotiation price reduction" are mainly aimed at chemical drugs and biological drugs Because China's varieties are basically concentrated in the field of traditional Chinese medicine, in relevant policies, traditional Chinese medicine varieties do not need price reduction, so they can maintain a relatively high price all the time In the 2019 version of the medical insurance catalog, 148 new varieties (in general name) were added for routine access, including 47 Western medicines and 101 Chinese patent medicines Subdivided into dosage forms, 58 of the new Western medicines are varieties, and 88 of the Chinese patent medicines are varieties According to some data, the total sales of the new varieties in the terminals of public medical institutions in China in 2018 is nearly 20 billion yuan After the release of the new version of the medical insurance catalog, pharmaceutical companies have released the good news of products entering the medical insurance For example, Lizhu pharmaceutical said that the company's new product, piropilon hydrochloride, will be actively purchased by medical institutions and used in clinical practice, which is conducive to the market promotion of the product In the long run, it will have a positive impact on the company's business performance In addition, Zhejiang Kangenbei also said that the newly added Chinese patent medicine longjintonglin capsule, Huange capsule and yanyanning tablet into the medical insurance catalog are conducive to consolidating and expanding the company's market share and brand position in this segment The industry believes that in the long run, the pharmaceutical companies will benefit from the new products or products with large market share entering the medical insurance catalog On the other hand, the daily medication amount of traditional Chinese medicine is not high, and compared with chemical medicine and biological medicine, the possibility of forced price reduction is relatively low Some senior doctors said that all the traditional Chinese medicines they used were purchased from pharmaceutical companies, but some doctors chose to "bypass" the pharmaceutical companies and use personal relationships to purchase materials and medicines directly from the origin to the clinic in order to reduce costs At the end of 2015, Shandong implemented the "two ticket system" in six cities such as Jinan, which requires that "when medical and health institutions check and accept drugs in storage, they should require circulation enterprises to provide copies of purchase invoices issued by production enterprises, so as to achieve the consistency of tickets, accounts, goods and funds" This also makes the purchase channels of clinics cannot be bypassed by pharmaceutical companies, and the sources of medicinal materials of pharmaceutical companies cannot be bypassed by production enterprises As the intermediate links increase, the price will naturally increase In the past two years, the price of traditional Chinese medicine has generally risen, but its rising momentum has not yet spread to the retail market, and the retail price of many drugstores is still very stable without too much fluctuation.